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Outstanding balance is the term that the credit card holder should be wary about, since that is what causes debt to accumulate and the financial situation to go out of control. Credit card companies charge an Annual Percentage Rate or APR as it is called, on the outstanding balance which is not cleared before the due date on the billing cycle. This APR is the main reason for the debt situation, since it is almost always as high as 20 to 30% of the outstanding balance. Every single time the total amount is not cleared by the due date, the APR is calculated for the total balance remaining, and added to the total.

Although clearing the outstanding balance promptly is recommended, there are some time when financial difficulty comes in the way of making the full payment. One way to keep the situation under control is through low APR cards. Low APR cards, like the name suggests have interest rates that are manageable, in case the total amount cannot be cleared. It is easier to pay off the outstanding balance in the following months, even if the payments are not made in full for one or two months. Low APR cards are specifically designed to help people manage debts better.

Like in most good credit cards, low APR cards have a catch to the benefits offered. First of all, there can be a high annual fee tagged along with the card, which negates the whole low interest offer. Secondly, usually these cards have a low interest rate offer only for a limited time period, or as a sign up bonus. After this time period ends, the high interest rates are back, which are probably higher than the other cards. One way to take advantage of low APR cards is to sign up for them on balance transfer schemes. Under this scheme, there will be an initial period of zero percent interest rate, which really helps in clearing the outstanding balance, interest free. Although these cards charge very high interest rates for new purchases made using them, when used under control, they are a great solution. All the payments made to the balance transfer card go into clearing the old outstanding balance, and the new purchases will be piled up. It is best to clear off the balance and use the card only for purchases that can be paid off in full. Apart from the balance transfer cards, there are student credit cards and business cards that also have comparatively low APR rates, and some benefits which may be useful.